SB2919 EnrolledLRB103 35721 LNS 65801 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Section 15-1507 and by adding Sections 15-1507.2 and
615-1510.1 as follows:
 
7    (735 ILCS 5/15-1507)  (from Ch. 110, par. 15-1507)
8    Sec. 15-1507. Judicial Sale.
9    (a) In General. Except as provided in Sections 15-1402 and
1015-1403, upon entry of a judgment of foreclosure, the real
11estate which is the subject of the judgment shall be sold at a
12judicial sale in accordance with this Section 15-1507.
13    (b) Sale Procedures.
14        (1) Upon expiration of the reinstatement period and
15    the redemption period in accordance with subsection (b) or
16    (c) of Section 15-1603 or upon the entry of a judgment of
17    foreclosure after the waiver of all rights of redemption,
18    except as provided in subsection (g) of Section 15-1506,
19    the real estate shall be sold at a sale as provided in this
20    Article, on such terms and conditions as shall be
21    specified by the court in the judgment of foreclosure. A
22    sale may be conducted by any judge, or sheriff, or other
23    person as set forth in paragraph (3) of subsection (f) of

 

 

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1    Section 15-1506.
2        (2) Without limiting the general authority and powers
3    of the court, the mortgagee, in a foreclosure under this
4    Article, may request that the judge, sheriff, or other
5    person conduct the sale either in person, online, or both,
6    if available.
7    (c) Notice of Sale. The mortgagee, or such other party
8designated by the court, in a foreclosure under this Article
9shall give public notice of the sale as follows:
10        (1) The notice of sale shall include at least the
11    following information, but an immaterial error in the
12    information shall not invalidate the legal effect of the
13    notice:
14            (A) the name, address and telephone number of the
15        person to contact for information regarding the real
16        estate;
17            (B) the common address and other common
18        description (other than legal description), if any, of
19        the real estate;
20            (C) a legal description of the real estate
21        sufficient to identify it with reasonable certainty;
22            (D) a description of the improvements on the real
23        estate;
24            (E) the times specified in the judgment, if any,
25        when the real estate may be inspected prior to sale;
26            (F) the time and place of the sale, including: ;

 

 

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1                (i) whether the sale will take place online,
2            in person, or both; and
3                (ii) the website where the online bidding may
4            take place, if applicable;
5            (G) the terms of the sale;
6            (H) the case title, case number and the court in
7        which the foreclosure was filed;
8            (H-1) in the case of a condominium unit to which
9        subsection (g) of Section 9 of the Condominium
10        Property Act applies, the statement required by
11        subdivision (g)(5) of Section 9 of the Condominium
12        Property Act;
13            (H-2) in the case of a unit of a common interest
14        community to which subsection (g-1) of Section 18.5 of
15        the Condominium Property Act applies, the statement
16        required by subdivision (g-1) of Section 18.5 of the
17        Condominium Property Act; and
18            (I) such other information ordered by the Court.
19        (2) The notice of sale shall be published at least 3
20    consecutive calendar weeks (Sunday through Saturday), once
21    in each week, the first such notice to be published not
22    more than 45 days prior to the sale, the last such notice
23    to be published not less than 7 days prior to the sale, by:
24    (i) (A) advertisements in a newspaper circulated to the
25    general public in the county in which the real estate is
26    located, in the section of that newspaper where legal

 

 

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1    notices are commonly placed and (B) separate
2    advertisements in the section of such a newspaper, which
3    (except in counties with a population in excess of
4    3,000,000) may be the same newspaper, in which real estate
5    other than real estate being sold as part of legal
6    proceedings is commonly advertised to the general public;
7    provided, that the separate advertisements in the real
8    estate section need not include a legal description and
9    that where both advertisements could be published in the
10    same newspaper and that newspaper does not have separate
11    legal notices and real estate advertisement sections, a
12    single advertisement with the legal description shall be
13    sufficient; in counties with a population of more than
14    3,000,000, the notice required by this item (B) shall be
15    published in a newspaper different from the newspaper that
16    publishes the notice required by item (A), and the
17    newspaper in which the notice required by this item (B) is
18    published shall be a newspaper published in the township
19    in which the real estate is located; and (ii) such other
20    publications as may be further ordered by the court.
21        (3) The party who gives notice of public sale in
22    accordance with subsection (c) of Section 15-1507 shall
23    also give notice to all parties in the action who have
24    appeared and have not theretofore been found by the court
25    to be in default for failure to plead. Such notice shall be
26    given in the manner provided in the applicable rules of

 

 

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1    court for service of papers other than process and
2    complaint, not more than 45 days nor less than 7 days prior
3    to the day of sale. After notice is given as required in
4    this Section a copy thereof shall be filed in the office of
5    the clerk of the court entering the judgment, together
6    with a certificate of counsel or other proof that notice
7    has been served in compliance with this Section.
8        (4) The party who gives notice of public sale in
9    accordance with subsection (c) of Section 15-1507 shall
10    again give notice in accordance with that Section of any
11    adjourned sale; provided, however, that if the adjourned
12    sale is to occur less than 60 days after the last scheduled
13    sale, notice of any adjourned sale need not be given
14    pursuant to this Section. In the event of adjournment, the
15    person conducting the sale shall, upon adjournment,
16    announce the date, time and place upon which the adjourned
17    sale shall be held or post on its website the date, time,
18    and place upon which the adjourned sale shall be held.
19    Notwithstanding any language to the contrary, for any
20    adjourned sale that is to be conducted more than 60 days
21    after the date on which it was to first be held, the party
22    giving notice of such sale shall again give notice in
23    accordance with this Section.
24        (5) Notice of the sale may be given prior to the
25    expiration of any reinstatement period or redemption
26    period.

 

 

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1        (6) No other notice by publication or posting shall be
2    necessary unless required by order or rule of the court.
3        (7) The person named in the notice of sale to be
4    contacted for information about the real estate may, but
5    shall not be required, to provide additional information
6    other than that set forth in the notice of sale.
7    (d) Election of Property. If the real estate which is the
8subject of a judgment of foreclosure is susceptible of
9division, the court may order it to be sold as necessary to
10satisfy the judgment. The court shall determine which real
11estate shall be sold, and the court may determine the order in
12which separate tracts may be sold.
13    (e) Receipt upon Sale. Following Upon and at the sale of
14mortgaged real estate, the person conducting the sale shall
15give to the purchaser a receipt of sale. The receipt shall
16describe the real estate purchased and shall show the amount
17bid, the amount paid, the total amount paid to date and the
18amount still to be paid therefor. An additional receipt shall
19be given at the time of each subsequent payment.
20    (f) Certificate of Sale. Upon payment in full of the
21amount bid, the person conducting the sale shall issue, in
22duplicate, and give to the purchaser a Certificate of Sale.
23The Certificate of Sale shall be in a recordable form,
24describe the real estate purchased, indicate the date and
25place of sale and show the amount paid therefor. The
26Certificate of Sale shall further indicate that it is subject

 

 

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1to confirmation by the court. The duplicate certificate may be
2recorded in accordance with Section 12-121. The Certificate of
3Sale shall be freely assignable by endorsement thereon.
4    (g) Interest after Sale. Any bid at sale shall be deemed to
5include, without the necessity of a court order, interest at
6the statutory judgment rate on any unpaid portion of the sale
7price from the date of sale to the date of payment.
8(Source: P.A. 100-685, eff. 8-3-18.)
 
9    (735 ILCS 5/15-1507.2 new)
10    Sec. 15-1507.2. Online judicial sale.
11    (a) The sheriff or other person may conduct the sale
12online in accordance with this Article.
13    (b) The sheriff or other person may engage a third-party
14online sale provider to assist with performance of the online
15sale. Any third-party online sale provider engaged by a
16sheriff must be acquired through a process that confirms that
17the provider meets the requirements set forth in this Article.
18    (c) In this Section, "third-party online sale provider"
19means any sale platform or services provider that is not the
20person conducting the sale or a party to the case involving the
21judicial sale and that is engaged by the person conducting the
22sale to assist with conducting the sale online in accordance
23with State law.
24    (d) The sheriff or other person may charge an additional
25fee as a reasonable expense of the sale for costs associated

 

 

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1with conducting the sale online.
2    (e) For any foreclosure involving residential real estate,
3the fee set forth in subsection (d) may not exceed $400, unless
4a higher fee is otherwise approved by the court. Any fees not
5charged as a cost in the case may be agreed to and paid
6directly by the judge, sheriff, other person conducting the
7sale or a party to the case without limitation. The fees
8charged under this Section shall not reduce or impact the
9sheriff's fees set forth in Section 4-5001 and 4-12001 of the
10Counties Code.
11    (f) To conduct a sale online, the sheriff or other person
12conducting the sale must demonstrate to the court's
13satisfaction documented processes and procedures for
14conducting online auctions, adequate recordkeeping, and the
15ability to comply with the requirements in this Article.
16    (g) If the sale takes place both online and in person, all
17bids accepted during the auction shall be simultaneously
18announced at the in-person sale and visible to the public
19online at the time the bids are placed. Any maximum bid amounts
20provided by bidders ahead of the sale shall not be visible to
21the public until the bid is placed.
22    (h) There shall be no fee charged to the public to view
23properties for sale online or to participate in any auction in
24person or online.
25    (i) Any third-party online sale provider may not maintain
26custody of sale funds on behalf of the judge, sheriff, or other

 

 

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1person conducting the sale unless specifically approved by the
2court to maintain custody of funds on their behalf.
3    (j) The sheriff or other person conducting the sale shall
4require a person seeking to bid electronically online to
5complete a registration process that includes providing
6information relevant to properly identify the bidder, contact
7the bidder, and complete the sale of the property as
8determined by the sheriff or other person conducting the sale.
9    (k) If the person registering to bid is an individual, the
10information required shall include the individual's name,
11electronic mail address, and telephone number.
12    (l) If the person registering to bid is an entity, the
13information required in this Section shall include the
14entity's legal name, name of an individual contact person for
15the entity, electronic mail address, and telephone number.
16    (m) The sheriff or other person conducting the sale online
17shall require all bidders who wish to participate in bidding
18online to have their identity verified through an
19identification verification process before a bid can be placed
20online, which may include verification through a government
21issued identification, biometric verification, or other method
22of verification as determined by the judge, sheriff, or other
23person conducting the sale. If a bidder's identity cannot be
24verified through the verification process, then the bidder may
25be prohibited from participating in the online sale.
26    (n) The purchaser at the sale shall submit to the person

 

 

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1conducting the sale the following information prior to the
2sale being finalized:
3        (1) All winning purchasers shall provide any required
4    information to be checked against the federal Office for
5    Foreign Assets Control sanction list by the person
6    conducting the sale before finalizing the purchase of the
7    property. The person conducting the sale shall check the
8    winning purchaser against the sanction list before an
9    order approving the sale may be entered.
10        (2) If the purchaser is an individual, the information
11    shall include the individual's name, physical mailing
12    address, electronic mail address, and any other
13    information requested by the person conducting the sale to
14    adequately identify and contact the purchaser.
15        (3) If the purchaser is an entity, the information
16    shall include the entity's legal name, trade name if
17    different from its legal name, state and date of
18    formation, mailing address, proof of business registration
19    with the State of Illinois, and the name of an individual
20    contact person for the entity, electronic mail address,
21    and the person's telephone number.
22        (4) The purchaser must provide the sale deposit, if
23    applicable, and the balance due to the sheriff or other
24    person conducting the sale at least 24 hours after the end
25    of the sale, unless otherwise set forth by the sheriff or
26    other person conducting the sale, in the form designated

 

 

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1    by the sheriff or other person conducting the sale.
2        (5) If the purchaser fails to provide the required
3    information within the time period designated by the
4    judge, sheriff, or other person conducting the sale, the
5    purchaser is in default and the judge, sheriff, or other
6    person conducting the sale may void the sale and proceed
7    with a resale.
8    (o) Any person conducting a sale online must maintain
9evidence of satisfactory internal informational security
10controls that meet industry standards and are maintained by
11the platform used to conduct online sales. Such evidence of
12satisfactory internal controls regarding data security may be
13in the form of an annual SOC 2 Report certification, with the
14ability to test and report on the design effectiveness (Type
151) and operating effectiveness (Type 2) of the platform's
16controls, or another form ensuring performance and security
17requirements are met.
18    (p) The person conducting the sale and the third-party
19online sale provider may engage in activities to promote and
20market the sale to encourage and facilitate bidding, including
21listing the property on real estate websites and conducting
22email campaigns. The person conducting the sale or the
23third-party online sale provider is solely responsible for
24paying all fees or expenses incurred in connection with such
25activities.
26    (q) In every sale conducted online of residential real

 

 

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1estate, (1) the sale may be held open for bidding for up to 3
2days and extended by the person conducting the sale as needed
3to allow for all active competitive bidding to occur, counted
4in accordance with Section 1.11 of the Statute on Statutes;
5and (2) bidding shall be open to everyone for the entire
6duration of the bidding period.
 
7    (735 ILCS 5/15-1510.1 new)
8    Sec. 15-1510.1. Third-party purchaser fees and costs.
9Notwithstanding any other provision of law to the contrary,
10for the sale of residential real estate, no fee, including a
11buyer's premium, may be charged to a third-party bidder or
12purchaser who is not a party to the case at the sale of real
13estate under this Article beyond the winning bid amount to
14cover an expense of conducting the sale.